🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

USDA confirms first big US soy sale to China since mid-December

Published 01/19/2024, 10:49 AM
Updated 01/19/2024, 11:35 AM
© Reuters. FILE PHOTO: Two people converse in a soybean field during harvest season in Deerfield, Ohio, U.S., October 7, 2021.  Picture taken with a drone. REUTERS/Dane Rhys/File Photo

CHICAGO (Reuters) - The U.S. Department of Agriculture (USDA) on Friday confirmed private sales of 297,000 metric tons of U.S. soybeans to China, the first soybean sales announcement under its daily reporting rules since Dec. 19 and the first to the world's top buyer of the oilseed since Dec. 15.

The sales announcement came a day after U.S. Agriculture Secretary Tom Vilsack met with China's Minister of Agriculture and Rural Affairs, Tang Renjian.

The booking also follows a 6% slide in Chicago Board of Trade (CBOT) soybean futures since the start of the calendar year, with the benchmark contract dipping to $12.01 a bushel this week before stabilizing in early moves on Friday.

Soybean futures have sagged on improved crop weather in Brazil, the largest global producer and exporter, following weeks of drought, although Brazilian production prospects remain uncertain.

Brazilian supplies are due to flood the market over the coming weeks as more soybeans are harvested. Exporters there are offering shipments in February and beyond at prices $1.50 or more below U.S. soybeans, analysts and exporters said.

Meanwhile, the USDA's Jan. 12 estimates of U.S. 2023/24 soybean production, ending stocks and Dec. 1 stockpiles all were above most trade expectations, easing supply concerns.

© Reuters. FILE PHOTO: Two people converse in a soybean field during harvest season in Deerfield, Ohio, U.S., October 7, 2021.  Picture taken with a drone. REUTERS/Dane Rhys/File Photo

China has booked 20.2 million metric tons of U.S. soybeans so far in the 2023/24 marketing year that began Sept. 1, down from 27.2 million tons a year ago.

The USDA has projected China's global 2023/24 soybean imports at 102 million tons, up from 100.85 million in 2022/23. However, a recent downturn in China's massive hog sector is expected to reduce first-quarter Chinese soybean imports to a four-year low.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.